By Etgar Lefkovits
JERUSALEM — Israel’s flag carrier, El Al, will be fined nearly $39 million for price-gouging during Israel’s two-year war against Hamas in the Gaza Strip, Israel’s Competition Authority announced Feb. 8.
The fine, which is the top penalty afforded by law, is subject to a hearing.
Any fine collected would go into state coffers.
El Al raked in record-breaking profits over the past two years when it flew as a virtual monopoly as foreign carriers halted flights to and from Israel, and as its airfares hit record highs amid huge demand and low supply.
“El Al served as a monopoly on flights from Oct. 7, 2023, until May, 2024, and set inflated and unreasonable prices on its fares during this period,” according to Israel’s Competition Authority.
It found that the average price increase during the war was 16% for economy and premium class.
The months-long ICA investigation followed harsh criticism in Israel over the national carrier’s pricing policies during the first year of the war.
The national carrier is also facing a separate lawsuit, in the hundreds of millions of dollars, alleging price-gouging.
The airline has denied the allegations and said on Feb. 8 it would dispute the fine.
“El Al completely rejects the claim that it charged excessive prices during the war,” a spokeswoman said. “Even if the Competition Authority’s position is accepted . . . there is no precedent for determining that such a price increase reflects excessive pricing.
“El Al will present its full position at the hearing and in any appropriate legal forum and is convinced that its position will be accepted.”
Meanwhile, the airline announced on Feb. 8 that it will launch nonstop service to Hanoi, Seoul and Manila from Tel Aviv, marking a major expansion of its service to Asia.
The thrice-weekly flights to each city will bring to a record 60 the number of destinations serviced by El Al.
The flights to Vietnam — which is already serviced by rival Israeli airline Arkia — will begin in October with economy fares starting at $899 round-trip, while service to South Korea will get underway in March, 2027.
No date has been set yet for the launch of the flights to the Philippines.
